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Yen stays range-bound vs dollar as intervention risk looms

BBH expects USD/JPY to trade between 155.00 and 160.00 near term, after the pair slipped back below its 200-day moving average at 158.47.

Reported · Written up by our desk · Major Pairs

Brown Brothers Harriman analyst Elias Haddad said political comments from US and Japanese leaders pushed USD/JPY back below its 200-day moving average, with the yen remaining range-bound against the dollar.

In FXStreet’s account of BBH’s view, Haddad pointed to wide US-Japan yield differentials, citing Fed funds at 3.75% to 4.00% versus the Bank of Japan at 1.25%, along with the BoJ’s cautious tightening cycle as support for USD/JPY.

BBH also warned that intervention risk and Japan’s policy mix are headwinds for the currency pair, and it projects USD/JPY to trade in a 155.00 to 160.00 range near term, FXStreet reported.

FXStreet noted that Japan’s finance minister Satsuki Katayama said US President Donald Trump raised concerns about yen weakness, while Japanese Prime Minister Sanae Takaichi said the undervalued yen is an issue.

Latest closeUSD/JPY 158.89 ▲0.9%

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